The SEC stated that: "This matter concerns violations of the anti-bribery, anti-fraud, books and records, and internal accounting controls provisions of the federal securities laws by Panasonic, a global electronics corporation headquartered in Osaka, Japan. The anti-bribery violation is the result of a 2007 bribery scheme involving senior management of one of Panasonic's U.S. subsidiaries, Panasonic Avionics Corporation ("PAC"), whereby a lucrative consulting position was provided to a government official ("Government Official") who assisted PAC in obtaining and retaining business from a state-owned airline ("Government Airline"). . . The anti-fraud violation is a result of Panasonic materially overstating its pre-tax income by at least $38.5 million or 9%, and net income by at least $22.4 million or 16%, for the quarter ending June 30, 2012."

The SEC stated that: "The Securities and Exchange Commission today announced that Japan-based Panasonic Corp. will pay more than $143 million to resolve charges of Foreign Corrupt Practices Act (FCPA) and accounting fraud violations involving its global avionics business. According to the SEC's order, Panasonic's U.S. subsidiary, Panasonic Avionics Corp. (PAC), a provider of in-flight entertainment and communication systems, offered a lucrative consulting position to a government official at a state-owned airline to induce the official to help PAC in obtaining and retaining business from the airline. At the time it orchestrated the bribery scheme, PAC was negotiating two agreements with the airline valued at more than $700 million. PAC ultimately retained the official and paid approximately $875,000 for a position that required little to no work, using an unrelated third-party vendor to conceal the payments. The SEC's order also found that Panasonic fraudulently overstated pre-tax and net income by prematurely recognizing more than $82 million in revenue for the fiscal quarter ending June 30, 2012. The fraud was accomplished by PAC backdating an agreement with the airline and providing misleading information to PAC's auditor."